Biography

Wolcott is Co-Founder & Executive Director of the Kellogg Innovation Network (KIN) and a Clinical Professor of Innovation and Entrepreneurship in Executive Education at the Kellogg School of Management, Northwestern University and formerly a visiting professor at the Keio Business School (Japan). Wolcott won Teacher of the Year from Kellogg's EMBA program in 2013, 2014 and 2015. He serves on the Digital Advisory Board of ZF, the German global industrial enterprise, and H-Farm, the leading digital innovation ecosystem in Italy. He has served on the advisory boards of Nordic Innovation for the Nordic Council, Oslo, Norway; the Kraft Foods Global Technology Council (GTC); and GE's Innovation Accelerator. Wolcott is also a managing partner with Clareo, a growth strategy consultancy serving senior executives at global corporations such as Exelon, Castrol, Johnson Controls, Owens Corning and others.

Wolcott is a regular contributor to Forbes regarding the impact of technology change on business, leadership and society. His book with Dr. Michael Lippitz, Grow From Within: Mastering Corporate Entrepreneurship and Innovation (McGraw-Hill, 2010) shares a decade of research and has been published in Chinese and Japanese. Wolcott's work has appeared in MIT Sloan Management Review, strategy+business, The Harvard Business Review (online), TheWall Street Journal, Advertising Age, Business Week, The Financial Times (European Edition), TheNew York Times and numerous overseas publications. He is a frequent speaker at events worldwide.

In 2003, Wolcott founded the Kellogg Innovation Network (KIN), a network of senior executives dedicated to driving sustainable innovation. The KIN's annual summit, KIN Global, takes place in late spring and includes leaders from around the world who collaborate around issues of significance for their organizations and for humanity (www.kinglobal.org). Wolcott is also an active angel investor in enterprises such as crowd funding leader Indiegogo (www.indiegogo.com), student loan innovator Lumni (www.lumni.net), legal documentation platform Page Vault (www.page-vault.com/), healthcare data and analytics providers SA Ignite (www.saignite.com) and ClearCare Online (exited to Battery Ventures in 2016; www.clearcareonline.com), cyber security provider MagicCube (www.magiccube.co) and international art exposition EXPO Chicago (www.expochicago.com).

Wolcott received a BA, European and Chinese History; and an MS and Ph.D., Industrial Engineering & Management Science, Northwestern University.

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Cases

Wolcott, Robert and JornBang Andersen. 2014. "The Innovation Radar and Enterprise Business System: Innovation in Five Nordic Countries and Beyond." In Global Innovation Science Handbook, 581-602. New York, NY: McGraw-Hill Education.

In this chapter we will present how both companies and countries can develop an innovation strategy and new innovation policy by applying new tools and innovation frameworks such as the Innovation Radar in a systematic way and over time. The chapter is structured in three main parts with the first part outlining the argument and case for piloting and using the Innovation Radar in 100 Nordic companies from five countries. Second, the main results from the Nordic programs “InnoTools” and “Measured and Managed Innovation” (MMI) are presented. This is followed by a discussion of key questions raised by 800 company managers and policy makers. The questions were raised from 2008 to 2013, which covered the InnoTools and MMI programs from start to finish. Finally, we summarize the findings into lessons learned from working with business model innovation at both the company and country levels, and how to take stock of these lessons with regard to future actions.

This report describes and places in context the emergent phenomenon of Innovation Communities (InnoComms): Groups of people who meet regularly to learn from each other about the challenges of managing innovation and entrepreneurship and to build personal and professional networks of supportive colleagues from industries and cultures beyond those they ordinarily encounter. -It describes the basis and motivation for InnoComms and distinguishes them from networking organizations that focus on achieving specific business, macroeconomic or social results or on academic research. -It characterizes and provides twenty-seven case studies from ten countries, placing them in five categories that span business, government, academia and nonprofit sectors. -It analyzes how trust is built and maintained in an InnoComm and how online tools and social media can support InnoComm development (but cannot substitute for in-person meetings). -It explores how InnoComms may support regional development, such as the creation of â€œinnovation hot spots,â€ and how the InnoComm phenomenon varies in different societies around the world.

The (A) case describes the evolution between 1999 and 2005 of an unusual innovation team within the office of the chief information officer at oil and gas giant BP. This team helped business units conceive, develop, and implement novel, value-added applications for emerging information technologies. The team leader, vice president and chief technology officer Phiroz Darukhanavala (“Daru”), eschewed a large group and venture budget in favor of a small, lean team intimately engaged with BP’s business units. The case describes several mechanisms created by the CTO office during its early evolution: “Blue Chalk” events that expanded executives’ appreciation of emerging technology capabilities, a network of relationships through which emerging technologies were scouted and vetted, a structured technology transfer process, and annual “game-changer” projects.

The (B) case describes how the CTO office team members in 2011 again solicited advice from their ecosystem of thought leaders and held workshops to significantly enhance their impact. As a result, they began developing solutions for broader, more fundamental business problems that came to be known as Grand Challenges: extremely difficult business problems whose solutions could potentially create hundreds of millions—or billions—of dollars in business value.

In December 1999, Thomson Financial (TF) began a radical transformation from 41 divisions toward a more integrated firm, organized around customer-segments. This required active, coordinated involvement from business, organization and technology functions, as well as sustained investment and execution through the crises of the technology market crash and September 11, 2001. By 2005 TF had emerged as one of the top three financial information firms globally (with Bloomberg & Reuters). LEARNING OBJECTIV Understand: 1. Building the customer-centric firm; ‘Synchronizing’ marketing (branding and sales), organizational, and technological infrastructure to focus on customer segments rather than products. 2. Making transformative, long-term investments under difficult circumstances. 3. Coordinating business, organization and technology strategies throughout a long-term transformation process.

The case compares two U.S. Department of Defense (DoD) programs from the 1970s and 1980s: (1) “stealth” combat aircraft, capable of evading detection or engagement by anti-aircraft systems, and (2) precision attack of hardened ground vehicles from “standoff” distances, i.e., far behind the battle lines. Conceived at roughly the same time, motivated by the same strategic challenge, and initially driven by the same DoD organization, stealth combat aircraft progressed from idea to deployment in less than eight years—an astounding pace for a complex military system—while a demonstrated system for standoff precision strike against mobile ground targets was not fully implemented. The case highlights the critical role of the Defense Advanced Research Projects Agency (DARPA), part of the DoD, regarded as one of the most innovative entities in the U.S. federal government.

The learning objective of this case is to highlight factors that facilitate rapid, successful implementation of radically innovative or disruptive concepts. Students will be introduced to the organizational realities facing such projects, including: issues of strategic clarity, inter-departmental competition and cooperation, executive leadership, and timing. While some of these elements have a different slant in government than they do in a large corporate setting, comparing the differences in implementation of these programs reveals issues relevant to any large organization seeking to bring innovative concepts to fruition.

The (A) case describes the evolution between 1999 and 2005 of an unusual innovation team within the office of the chief information officer at oil and gas giant BP. This team helped business units conceive, develop, and implement novel, value-added applications for emerging information technologies. The team leader, vice president and chief technology officer Phiroz Darukhanavala (“Daru”), eschewed a large group and venture budget in favor of a small, lean team intimately engaged with BP’s business units. The case describes several mechanisms created by the CTO office during its early evolution: “Blue Chalk” events that expanded executives’ appreciation of emerging technology capabilities, a network of relationships through which emerging technologies were scouted and vetted, a structured technology transfer process, and annual “game-changer” projects.

The (B) case describes how the CTO office team members in 2011 again solicited advice from their ecosystem of thought leaders and held workshops to significantly enhance their impact. As a result, they began developing solutions for broader, more fundamental business problems that came to be known as Grand Challenges: extremely difficult business problems whose solutions could potentially create hundreds of millions—or billions—of dollars in business value.

In January 2005 Dr. Mean Chhi Vun, director of the Cambodian National Center for HIV/AIDS, Dermatology and STDs (NCHADS), needed to decide how to control the spread of HIV/AIDS and save the lives of thousands of Cambodians who were dying from it each year. In the seven years since Dr. Vun had been appointed director, NCHADS had built an organization that was transparent and efficient, had implemented a nationwide 100 percent Condom Use Program, had established a system that allowed individuals to voluntarily seek confidential counseling and testing, and had instituted a set of guidelines and procedures for staff at health facilities to refer HIV-positive patients to treatment clinics and link them with NGOs providing financial and psychosocial support.

Now, however, Dr. Vun faced decisions about three initiatives that were critical to expanding care and treatment programs in his country. First, he needed to decide how to quickly and cost-effectively improve the national HIV/AIDS laboratory support infrastructure. Second, Dr. Vun needed to improve logistics and supply management in order to get the best prices and ensure patients had access to life-saving medicines. Finally, he needed to figure out how to provide sustainable care and treatment to the thousands of Cambodian children living with HIV/AIDS.

The case describes the evolution between 1999 and 2008 of a family-owned contract manufacturing company into a publicly traded, US$400 million global firm. The son of the founder, Bernie Auyung, assumed the CEO position with the company during this period and has worked with his father to build a broader, professional management team. In the process the company has applied a range of leading-edge innovation management and strategy tools that put it far ahead of most Chinese peer companies. Computime provides an exceptional model for other companies in developing countries looking to evolve from a low-cost competitor into a global leading company with its own technologies and brands. Students are asked to assume Bernie’s role and suggest the path forward. The teaching note describes what the team actually did, and addresses the questions raised at the end of the case.

The case presents a $1+billion technology company seeking new growth through the introduction of a radically new product platform. During its first ten years, PTC Corporation grew faster than Microsoft did during the similar period of its evolution. By the late 1990s PTC was faced with intensified competition and saturation in its core markets. To maintain growth, the company introduced a completely new product platform. While PTC focused in developing and selling the product, it failed to recognize that this new product was so different from its traditional offerings that it required a new organizational structure, sales capabilities, support processes, and market strategy. The case traces the company’s evolution from development and launch of Windchill through the four-year period post-launch, during which its founding CEO was forced out and the company transformed. Ultimately, Windchill became a top seller for PTC, but not until after significant internal change. The PTC case illustrates what it means to build a new business within the context of an existing, successful firm. It can also be used to explore what it takes to accomplish a successful new product launch for a substantially new product platform. Sales and channel strategy also figures prominently in the case.

Wolcott, Robert C.. 2006. Wawa: Building a New Business within an Established Firm TN. Case 5-306-505 (KEL240).

Wawa, a $4 billion privately held firm, is arguably the most successful convenience store operator in the United States. The case explores how senior management decided to build an entirely new gasoline retailing business within the 100+-year-old firm’s core business of high-quality prepared foods and beverages. The case charges students with defining the business and organization strategy necessary to “mainstream” the newly proven gasoline retailing concept throughout the company.

Conley, James Gerard, Robert C. Wolcott and Eric Wong. 2006. AstraZeneca, Prilosec, and Nexium: Strategic Challenges in the Launch of a Second-Generation Drug. Case 5-404-752 (KEL334).

Tom McKillop, CEO of AstraZeneca, faced the classic quandary of large pharmaceutical firms. Within the year, the firm’s patent for Prilosec (active ingredient omeprazole) was expiring. Prilosec was a US$6.2 billion/year blockbuster that revolutionized the treatment of chronic gastro-esophageal reflux disorders (GERD). Severe cost-based competition from generic drug manufacturers was, however, inevitable. Patent expirations were nothing new for the US$15.8 billion in revenues drug firm. AstraZeneca had Nexium, an improvement on the original Prilosec molecule, in the pipeline. Ideally, it would like to move brand-loyal Prilosec customers to Nexium. Additionally, the company had the opportunity to introduce its own version of generic omeprazole, hence becoming the first mover in the generic segment, and/or introduce an over-the-counter (OTC) version of omeprazole. Tactically, AstraZeneca would like to use regulatory incentives and intellectual property rights to strengthen its competitive position. How could the company use its entire portfolio of intellectual properties—including patents and trademarks—to actively manage the priced-based competition and achieve a revenue growth strategy in the GERD market? Use with Case Supplement #5-404-753 (KEL335).

Conley, James Gerard, Robert C. Wolcott and Eric Wong. 2006. AstraZeneca, Prilosec, and Nexium: Marketing Challenges in the Launch of a Second-Generation Drug. Case 5-404-775 (KEL336).

Tom McKillop, CEO of AstraZeneca, faced the classic quandary of large pharmaceutical firms. The firm’s patent for Prilosec (active ingredient omeprazole) was expiring. Severe cost-based competition from generic drug manufacturers was inevitable. Patent expirations were nothing new for the US$15.8 billion in revenues drug firm, but Prilosec was the firm’s most successful drug franchise, with global sales of US$6.2 billion. How could the company innovate its way around the generic cost-based competition and avoid the drop in revenues associated with generic drug market entry? AstraZeneca had other follow-on drugs in the pipeline—namely Nexium, an improvement on the original Prilosec molecule. Additionally, the company had the opportunity to introduce its own version of generic omeprazole, hence becoming the first mover in the generic segment, and/or introduce an OTC version of omeprazole that might tap into other markets. Ideally, AstraZeneca would like to move brand-loyal Prilosec customers to Nexium. In this market, direct-to-consumer advertising has remarkable efficacy. Classical marketing challenges of pricing and promotion need to be resolved for the Nexium launch as well as possible product and place challenges for the generic or OTC opportunity. Which combination of marketing options will allow the firm to best sustain the value of the original omeprazole innovation?

This technical note provides a history and context for corporate venture capital (CVC) investment, or the practice of corporations making equity investments in startup companies outside their core business. The note outlines the growth of CVC, from its inception in the 1960s through its maturation today, and explores companies' motivations for making these types of investments, which typically involve a combination of both financial and strategic goals. In addition, the note explores how CVC units within companies are structured, how they evaluate and finance investment opportunities, and how they generate business value for the parent company.

Wolcott, Robert and JornBang Andersen. 2014. "The Innovation Radar and Enterprise Business System: Innovation in Five Nordic Countries and Beyond." In Global Innovation Science Handbook, 581-602. New York, NY: McGraw-Hill Education.

In this chapter we will present how both companies and countries can develop an innovation strategy and new innovation policy by applying new tools and innovation frameworks such as the Innovation Radar in a systematic way and over time. The chapter is structured in three main parts with the first part outlining the argument and case for piloting and using the Innovation Radar in 100 Nordic companies from five countries. Second, the main results from the Nordic programs “InnoTools” and “Measured and Managed Innovation” (MMI) are presented. This is followed by a discussion of key questions raised by 800 company managers and policy makers. The questions were raised from 2008 to 2013, which covered the InnoTools and MMI programs from start to finish. Finally, we summarize the findings into lessons learned from working with business model innovation at both the company and country levels, and how to take stock of these lessons with regard to future actions.

This report describes and places in context the emergent phenomenon of Innovation Communities (InnoComms): Groups of people who meet regularly to learn from each other about the challenges of managing innovation and entrepreneurship and to build personal and professional networks of supportive colleagues from industries and cultures beyond those they ordinarily encounter. -It describes the basis and motivation for InnoComms and distinguishes them from networking organizations that focus on achieving specific business, macroeconomic or social results or on academic research. -It characterizes and provides twenty-seven case studies from ten countries, placing them in five categories that span business, government, academia and nonprofit sectors. -It analyzes how trust is built and maintained in an InnoComm and how online tools and social media can support InnoComm development (but cannot substitute for in-person meetings). -It explores how InnoComms may support regional development, such as the creation of â€œinnovation hot spots,â€ and how the InnoComm phenomenon varies in different societies around the world.

The (A) case describes the evolution between 1999 and 2005 of an unusual innovation team within the office of the chief information officer at oil and gas giant BP. This team helped business units conceive, develop, and implement novel, value-added applications for emerging information technologies. The team leader, vice president and chief technology officer Phiroz Darukhanavala (“Daru”), eschewed a large group and venture budget in favor of a small, lean team intimately engaged with BP’s business units. The case describes several mechanisms created by the CTO office during its early evolution: “Blue Chalk” events that expanded executives’ appreciation of emerging technology capabilities, a network of relationships through which emerging technologies were scouted and vetted, a structured technology transfer process, and annual “game-changer” projects.

The (B) case describes how the CTO office team members in 2011 again solicited advice from their ecosystem of thought leaders and held workshops to significantly enhance their impact. As a result, they began developing solutions for broader, more fundamental business problems that came to be known as Grand Challenges: extremely difficult business problems whose solutions could potentially create hundreds of millions—or billions—of dollars in business value.

In December 1999, Thomson Financial (TF) began a radical transformation from 41 divisions toward a more integrated firm, organized around customer-segments. This required active, coordinated involvement from business, organization and technology functions, as well as sustained investment and execution through the crises of the technology market crash and September 11, 2001. By 2005 TF had emerged as one of the top three financial information firms globally (with Bloomberg & Reuters). LEARNING OBJECTIV Understand: 1. Building the customer-centric firm; ‘Synchronizing’ marketing (branding and sales), organizational, and technological infrastructure to focus on customer segments rather than products. 2. Making transformative, long-term investments under difficult circumstances. 3. Coordinating business, organization and technology strategies throughout a long-term transformation process.

The case compares two U.S. Department of Defense (DoD) programs from the 1970s and 1980s: (1) “stealth” combat aircraft, capable of evading detection or engagement by anti-aircraft systems, and (2) precision attack of hardened ground vehicles from “standoff” distances, i.e., far behind the battle lines. Conceived at roughly the same time, motivated by the same strategic challenge, and initially driven by the same DoD organization, stealth combat aircraft progressed from idea to deployment in less than eight years—an astounding pace for a complex military system—while a demonstrated system for standoff precision strike against mobile ground targets was not fully implemented. The case highlights the critical role of the Defense Advanced Research Projects Agency (DARPA), part of the DoD, regarded as one of the most innovative entities in the U.S. federal government.

The learning objective of this case is to highlight factors that facilitate rapid, successful implementation of radically innovative or disruptive concepts. Students will be introduced to the organizational realities facing such projects, including: issues of strategic clarity, inter-departmental competition and cooperation, executive leadership, and timing. While some of these elements have a different slant in government than they do in a large corporate setting, comparing the differences in implementation of these programs reveals issues relevant to any large organization seeking to bring innovative concepts to fruition.

The (A) case describes the evolution between 1999 and 2005 of an unusual innovation team within the office of the chief information officer at oil and gas giant BP. This team helped business units conceive, develop, and implement novel, value-added applications for emerging information technologies. The team leader, vice president and chief technology officer Phiroz Darukhanavala (“Daru”), eschewed a large group and venture budget in favor of a small, lean team intimately engaged with BP’s business units. The case describes several mechanisms created by the CTO office during its early evolution: “Blue Chalk” events that expanded executives’ appreciation of emerging technology capabilities, a network of relationships through which emerging technologies were scouted and vetted, a structured technology transfer process, and annual “game-changer” projects.

The (B) case describes how the CTO office team members in 2011 again solicited advice from their ecosystem of thought leaders and held workshops to significantly enhance their impact. As a result, they began developing solutions for broader, more fundamental business problems that came to be known as Grand Challenges: extremely difficult business problems whose solutions could potentially create hundreds of millions—or billions—of dollars in business value.

In January 2005 Dr. Mean Chhi Vun, director of the Cambodian National Center for HIV/AIDS, Dermatology and STDs (NCHADS), needed to decide how to control the spread of HIV/AIDS and save the lives of thousands of Cambodians who were dying from it each year. In the seven years since Dr. Vun had been appointed director, NCHADS had built an organization that was transparent and efficient, had implemented a nationwide 100 percent Condom Use Program, had established a system that allowed individuals to voluntarily seek confidential counseling and testing, and had instituted a set of guidelines and procedures for staff at health facilities to refer HIV-positive patients to treatment clinics and link them with NGOs providing financial and psychosocial support.

Now, however, Dr. Vun faced decisions about three initiatives that were critical to expanding care and treatment programs in his country. First, he needed to decide how to quickly and cost-effectively improve the national HIV/AIDS laboratory support infrastructure. Second, Dr. Vun needed to improve logistics and supply management in order to get the best prices and ensure patients had access to life-saving medicines. Finally, he needed to figure out how to provide sustainable care and treatment to the thousands of Cambodian children living with HIV/AIDS.

The case describes the evolution between 1999 and 2008 of a family-owned contract manufacturing company into a publicly traded, US$400 million global firm. The son of the founder, Bernie Auyung, assumed the CEO position with the company during this period and has worked with his father to build a broader, professional management team. In the process the company has applied a range of leading-edge innovation management and strategy tools that put it far ahead of most Chinese peer companies. Computime provides an exceptional model for other companies in developing countries looking to evolve from a low-cost competitor into a global leading company with its own technologies and brands. Students are asked to assume Bernie’s role and suggest the path forward. The teaching note describes what the team actually did, and addresses the questions raised at the end of the case.

The case presents a $1+billion technology company seeking new growth through the introduction of a radically new product platform. During its first ten years, PTC Corporation grew faster than Microsoft did during the similar period of its evolution. By the late 1990s PTC was faced with intensified competition and saturation in its core markets. To maintain growth, the company introduced a completely new product platform. While PTC focused in developing and selling the product, it failed to recognize that this new product was so different from its traditional offerings that it required a new organizational structure, sales capabilities, support processes, and market strategy. The case traces the company’s evolution from development and launch of Windchill through the four-year period post-launch, during which its founding CEO was forced out and the company transformed. Ultimately, Windchill became a top seller for PTC, but not until after significant internal change. The PTC case illustrates what it means to build a new business within the context of an existing, successful firm. It can also be used to explore what it takes to accomplish a successful new product launch for a substantially new product platform. Sales and channel strategy also figures prominently in the case.

Wolcott, Robert C.. 2006. Wawa: Building a New Business within an Established Firm TN. Case 5-306-505 (KEL240).

Wawa, a $4 billion privately held firm, is arguably the most successful convenience store operator in the United States. The case explores how senior management decided to build an entirely new gasoline retailing business within the 100+-year-old firm’s core business of high-quality prepared foods and beverages. The case charges students with defining the business and organization strategy necessary to “mainstream” the newly proven gasoline retailing concept throughout the company.

Tom McKillop, CEO of AstraZeneca, faced the classic quandary of large pharmaceutical firms. Within the year, the firm’s patent for Prilosec (active ingredient omeprazole) was expiring. Prilosec was a US$6.2 billion/year blockbuster that revolutionized the treatment of chronic gastro-esophageal reflux disorders (GERD). Severe cost-based competition from generic drug manufacturers was, however, inevitable. Patent expirations were nothing new for the US$15.8 billion in revenues drug firm. AstraZeneca had Nexium, an improvement on the original Prilosec molecule, in the pipeline. Ideally, it would like to move brand-loyal Prilosec customers to Nexium. Additionally, the company had the opportunity to introduce its own version of generic omeprazole, hence becoming the first mover in the generic segment, and/or introduce an over-the-counter (OTC) version of omeprazole. Tactically, AstraZeneca would like to use regulatory incentives and intellectual property rights to strengthen its competitive position. How could the company use its entire portfolio of intellectual properties—including patents and trademarks—to actively manage the priced-based competition and achieve a revenue growth strategy in the GERD market? Use with Case Supplement #5-404-753 (KEL335).

Tom McKillop, CEO of AstraZeneca, faced the classic quandary of large pharmaceutical firms. The firm’s patent for Prilosec (active ingredient omeprazole) was expiring. Severe cost-based competition from generic drug manufacturers was inevitable. Patent expirations were nothing new for the US$15.8 billion in revenues drug firm, but Prilosec was the firm’s most successful drug franchise, with global sales of US$6.2 billion. How could the company innovate its way around the generic cost-based competition and avoid the drop in revenues associated with generic drug market entry? AstraZeneca had other follow-on drugs in the pipeline—namely Nexium, an improvement on the original Prilosec molecule. Additionally, the company had the opportunity to introduce its own version of generic omeprazole, hence becoming the first mover in the generic segment, and/or introduce an OTC version of omeprazole that might tap into other markets. Ideally, AstraZeneca would like to move brand-loyal Prilosec customers to Nexium. In this market, direct-to-consumer advertising has remarkable efficacy. Classical marketing challenges of pricing and promotion need to be resolved for the Nexium launch as well as possible product and place challenges for the generic or OTC opportunity. Which combination of marketing options will allow the firm to best sustain the value of the original omeprazole innovation?

This technical note provides a history and context for corporate venture capital (CVC) investment, or the practice of corporations making equity investments in startup companies outside their core business. The note outlines the growth of CVC, from its inception in the 1960s through its maturation today, and explores companies' motivations for making these types of investments, which typically involve a combination of both financial and strategic goals. In addition, the note explores how CVC units within companies are structured, how they evaluate and finance investment opportunities, and how they generate business value for the parent company.

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